Quest Management Inc (QSMG) WACC Analysis

As of June 3, 2025, Quest Management Inc (QSMG) carries a Weighted Average Cost of Capital (WACC) of 7.1%. WACC reflects the blended rate Quest Management Inc must pay to both equity and debt holders.

Within that, the cost of equity is 6.0%, the cost of debt is 5.0%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 4.2% – 4.7%
• Equity market risk premium: 5.0% – 6.0%
• Adjusted beta: 0.36 – 0.64
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.1

What It Means for Investors

With a selected WACC of 7.1%, Quest Management Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.